National High Court Decision 2007Du2271 ( December 26, 2007)

Since merchandise coupon trading business falls under financial business, it constitutes business income other than interest income.

As long as merchandise coupon sales business falls under a financial business, income acquired by the plaintiff as a merchandise coupon sales business cannot be classified as interest income with a nature of price due to the use of money, such as bonds or interest on securities, and it shall be viewed as business income.

The contents of the decision shall be the same as attached.

Article 16 (Interest Income)

Article 19 (Business Income)

1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

The Defendant’s disposition of imposition of global income tax of KRW 19,266,90 for the Plaintiff on January 5, 2007 shall be revoked.

1. Details of the disposition;

A. From April 25, 2004, the Plaintiff: (a) from around 2004 to around 1133-○○○○ Office 202, Incheon, ○○○○○-dong, 1133-○○ Office 202, a business operator operating a cultural product right sales business under the trade name of “○○○○○○○○”; (b) on global income tax returns in 2005, the Plaintiff deemed the Plaintiff’s KRW 40,150,00 as the gross income amount in 2005; and (c) calculated the estimated income amount applying the simple expense expense 70.3% to the said amount as the global income amount; and (d) reported and paid KRW 345,960 as other global income tax

나. 피고는 원고가 ○○○○게임장에 판매한 상품권 60,000매, 판매금액 285,000,000원(60,000매☓4,750원)에 대한 종합소득세의 신고를 누락하였다는 이유로 원고가 기신고한 총수입금액 40,150,000원에 285,000,000원을 합산하여 원고의 총수입금액을 325,150,000원으로 경정한 후 위 금액에 단순경비율 70.3%를 반영한 추계소득금액을 96,569,550원을 원고의 종합소득금액으로 산출하여 2007.1.1. 원고에 대하여 2005년 귀속 종합소득세 23,727,150원을 부과, 고지하였다.

C. After that, the Defendant recognized that the gains from the sale of gift certificates sold at ○○○ Game site was included in KRW 40,150,000, which was originally reported by the Plaintiff, and accordingly, reduced the Plaintiff’s total income amount to KRW 285,00,000. Accordingly, the Defendant corrected the Plaintiff’s reduction of KRW 4,460,160 as global income tax for the year 2005 (hereinafter the first imposition disposition of global income tax on January 1, 2007, the remaining portion after the reduction as above is the disposition of this case)

D. The plaintiff was dissatisfied with the disposition of this case and filed an appeal with the National Tax Tribunal on June 14, 2007, but the National Tax Tribunal dismissed the plaintiff's appeal on December 28, 2007.

[Ground of recognition] Facts without dispute, Gap evidence 1 through 6 (including additional numbers), Eul evidence 1-2, Eul evidence 3, the purport of the whole pleadings

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

The Plaintiff obtained profit from the sale of gift certificates of KRW 5,00 at a discount of KRW 4,750 from the game room users for the intermediate distribution of KRW 250 won per merchandise coupon. The Plaintiff’s profit from the sale of gift certificates at a discount of KRW 4,750 per merchandise coupon was acquired. The Plaintiff’s profit from the sale of merchandise coupons at a discount of KRW 250 won per merchandise coupon. The Plaintiff’s profit from the sale of merchandise coupons is in the nature of the discount amount of bonds issued by a domestic corporation or the price for the use of money, and thus, it constitutes interest income under Article 16(1)2 and 13 of the Income Tax Act. Thus, when calculating global income tax on the Plaintiff, the Plaintiff’s profit from the sale of merchandise coupons in 205 should be calculated by considering only the profit margin of the Plaintiff’s merchandise coupon in the calculation of global income tax on the Plaintiff. However, the Defendant’s total sales value of merchandise coupons sold by the Plaintiff as gross income is in violation of the legal principle of Article 16 of the Income Tax Act.

(b) Related statutes;

Article 16 (Interest Income)

Article 19 (Business Income)

C. Determination

According to Article 16 (1) 2, 13, and 16 (2) of the Income Tax Act, interest and discount amounts of bonds or securities issued by a domestic corporation and income similar thereto which combines the nature of consideration following the use of money shall be classified as interest income for the corresponding year. Under Article 19 (1) 10 and 19 (2) of the Income Tax Act, income accrued from the financial and insurance business shall be classified as business income, and business income shall be deducted from necessary expenses incurred in the corresponding year's gross income. This provision provides that the merchandise coupon sales business operated by the plaintiff shall be calculated as income from the sale and purchase business of merchandise coupons (the merchandise coupon sales business operated by the code) among other financial businesses within the corresponding year's total income in the corresponding year's business and other financial businesses (the merchandise coupon sales business operated by the plaintiff is 65901), income from the plaintiff's sale and purchase business of merchandise coupons shall be classified as business income from 20 years' total income from the plaintiff's sales or insurance business income from 200 years's total income from merchandise sales or 205 years's total income amount of securities.

그런데 갑 제3호증의 1 내지 6의 각 기재에 변론 전체의 취지를 종합하면, 원고가 2005년도에 ○○○○게임장에 판매한 총 상품권 판매금액은 285,000,000원(60,000장☓4,750원) 인 사실, 원고가 위와 같이 판매한 상품권의 매입가액을 확인할 객관적인 자료는 없는 사실을 인정할 수 있으므로, 피고가 원고의 ○○○○게임장에 대한 2005년도 상품권 판매금액인 285,000,000원을 원고의 총수입금액으로 본 뒤 원고의 상품권 매입가액을 확인할 수 있는 장부 기타 증빙서류가 없어 상품권 매매업의 단순경비율 70.3%를 적용하여 원고의 소득금액을 84,645,000원으로 추계결정하여 원고에 대한 2005년 귀속 종합소득세를 산정, 부과한 것은 정당하고, 이와 다른 전제에 선 원고의 주장은 이유 없다.

3. Conclusion

Therefore, the plaintiff's claim of this case is dismissed as it is without merit, and it is so decided as per Disposition.